Constellation Energy Set for Earnings Surge Amid Market Growth

Constellation Energy is expected to post a strong earnings per share of $2.20, a dramatic 2100% increase year-over-year. Analysts remain bullish on the stock, with a consensus rating of 'Moderate Buy', following its strategic acquisition of Calpine Corporation.

Date: 21-01-2025

AI Rating: 8

Earnings Per Share (EPS)
Constellation Energy is anticipated to report a profit of $2.20 per share for its upcoming Q4 earnings, significantly up from a $0.11 loss in the corresponding quarter last year, marking a remarkable improvement. The company is also projected to achieve an adjusted EPS of $8.43 for the fiscal year 2024, up 68.3% from $5.01 in fiscal 2023.

Stock Performance
CEG stock has surged 182.7% over the past year, outpacing the S&P 500 Index's 26.5% gains and the Utilities Select Sector SPDR Fund's 27.7% returns. The strong momentum can be attributed to rising electricity demand, particularly for AI-driven data centers, combined with the company's diversification following the acquisition of Calpine Corporation for $16.4 billion.

Market Sentiment
Following the acquisition, CEG shares saw a pop of over 3%, as several analysts raised their price targets, which further indicates positive market sentiment. Guggenheim Securities increased its target to $378, and Jefferies Financial Group marked it at $274, calling the deal "value accretive". With 11 out of 17 analysts recommending a 'Strong Buy', market confidence appears robust.

Stocks: CEG SPX